- 23 August 2019
- Transport / Logistics Services
Eddie Stobart has suspended share trading and its CEO has stood down while the logistics company investigates internal accounting irregularities. According to the company, profits are “likely to be significantly lower than anticipated”.
The outgoing CEO Alex Laffey is being replaced with Sebastien Desreumax who is currently CEO of iForce and head of contract logistics in the company. He will soon be appointed to the board.
The firm released a statement that said following a review that was carried out in conjunction with its auditors in relation to the interim results, “the Board is applying a more prudent approach to revenue recognition, re-assessing the recoverability of certain receivables, as well as considering the appropriateness of certain provisions.
“While revenue expectations for the first half are broadly in line with previous guidance, the full impact of these items on Adjusted EBIT is unclear, but it is likely to be significantly lower than anticipated at the time of the half year trading update on 9 July 2019. As a result, the board also intends to review the group’s current dividend policy.”